Briefs

Lithuanians to gain stake in Polish road construction company

The Lithuanian bridge and road construction firm Kauno Tiltai, is reportedly close to acquiring a sixty per cent stake in the Polish state-owned company Przedsiębiorstwo Drogowo-Mostowe (PDM), for an undisclosed sum.
The deal is to be finalized by the end of this year and will be the largest Lithuanian investment in Poland to date. PDM's employees have been pledged their jobs for at least five years by their new bosses.

Stock exchange membership put on hold

Puls Biznesu have reported that despite applying initially to the stock exchange commission for admission at the end of 2002, the Warsaw developer, JW Construction, has ultimately opted out of the move.
Although the company has decided against the acquisition of funds via the stock-exchange, it is now seeking a strategic partner to assist its domestic and foreign markets' projects.

Skanska's six month report

Skanska has issued a new six month report for the first half of this year, using a new reporting structure, which will involve accounting for its different business streams: Construction and Services, Residential Project Development, Commercial Project Development and BOT, separately.
The report finds that the Skanska group improved its financial situation and reduced its net debt but net sales decreased by ten percent. Net income was found to have increased to EUR 121.7 mln.

No new mortgage bank

There will be no new mortgage bank in Poland, according to the daily newspaper "Gazeta Wyborcza", as PKO BP has withdrawn from the project.
The planned new mortgage bank, which was to be called Polski Bank Hipoteczny, was an initiative by PKO BP and Bank Gospodarstwa Krajowego but at a management board meeting, the former decided to quit the project. According to "GW" sources, this was for two reasons: that PKO BP wants to prepare itself for the privatisation process planned for 2004 and that other mortgage banks in Poland are not doing very well at the moment.

EUR 175 mln loan granted for motorway construction

The European Investment Bank has granted Poland a EUR 175 mln loan to contribute towards the construction of a section of the A2 East-West motorway, between Konin and Wiskitki. The total cost of the project is EUR 729 mln and further finance will be secured from other EU sources, such as the ISPA and cohesion funds.
The Polish government has plans to build 70 km of motorway this year, 140 km next and 200 km in 2005.